A Review of the Nigerian Energy Industry

High gas price affecting power supply – Nebo

Gas exports28 December 2013, Abuja – The challenge of inadequate gas supply to power plants which is negatively affecting power generation is beyond just the issue of vandalism.

It includes the disparity in price between gas supply to the power sector and the industrial sector.

Disclosing this in an interview, Minister of Power, Prof Chinedu Nebo, said gas suppliers first consider sending gas to the industrial sector where it is better paid for before considering the power sector.

Nebo said, “If you were a gas supplier you will first consider supplying gas to the person who pays better and pays on time than the person who pays you much less and still owes you. That has been the picture all along. The power plants were getting gas at very cheap rates because they were owned by government.”

While expressing delight that the sector was now in the hands of the private sector and the situation would get better, Nebo said “it’s unfortunate we have defaulted in the past in paying the gas companies, so anytime there is a reason not to supply gas they thank God for it because it means they will not be owed. But that’s changing, since January we have paid every bill for gas. Not only that the tariff for gas to power is rising, it’s about $1.80 now, I think it’s going up to $2 very soon and it will continue to appreciate, it’s very critical.”
*Juliet Alohan, Leadership

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